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MKlein1
May 14, 2024
Question

New York Taxes

  • May 14, 2024
  • 1 reply
  • 0 views

Hello, 

I'm trying to set up payroll taxes for an employee who just moved to New York. Our insurance broker got us a NY disability/ PFL insurance coverage and we have paid the premium for the year.  Do I still deduct PFL from the employee and how is it different from the default PFL deduction that popped up after I updated their address in QB?

And is our NYBE Business ID our account ID for everything?  I've applied for UI and wage reporting registration 2 weeks ago and it's still pending to this day 😞

Thank you in advance for the feedback!

 

1 reply

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Erika_K
May 14, 2024

I want to ensure that I can address all your inquiries, MKlein1. I'm prepared to deliver the essential information for properly establishing payroll tax procedures for your employee who recently relocated to New York.

 

After updating your employee's address, QuickBooks will automatically set the default PFL deduction. Since the system relies on the worker's information created within the program. Therefore, you don't have to set up another payroll tax for the one who moved to New York. Considering the PFL from the employee and the default PFL are the same. 

Refer to this article on how you can track the paid family leave in New York within QuickBooks: Set up and manage New York Paid Family Leave Insurance. 


Moreover, it's important to note that Intuit doesn't debit the money or pay to the Insurance Company. The employer is the one responsible for paying the insurance directly. Check out this guide for additional info: Set up and manage New York Paid Family Leave Insurance.

Also, the NYBE Business ID isn't universal. This identifier provides a single sign-on across state websites, and businesses still need to obtain separate tax IDs and vendor IDs and create specific accounts (like for online tax services) depending on their activities and filing requirements in New York State. In this case, I recommend consulting your State Agency for further verification. 

 

Regarding your concern with the UI and wage reporting registration, I suggest contacting your State Agency. This way, we can accurately determine tax responsibilities, maintain compliance, understand evolving regulations, and leverage state-specific provisions or agreements that may apply to your business's situation. 

 

Don't hesitate to reach out whenever you have additional questions or require further assistance, MKlein1. I am committed to providing you with the guidance and resources necessary to confidently manage employee deductions and contributions, ensuring compliance, and fostering a positive and productive work environment for all. Take care, and know that I am here, ready to support you every step of the way.

M
MKlein1Author
May 16, 2024

Thank you so much for this.  I called the agency and they were able to provide me with our Account ID for UI and wage reporting.

My next issue:  I've tried setting up the MCTMT tax, and while I verified with the employee that they reside in Zone 1, the QB defaulted to Zone 2.  How do I fix that, or do I need to since we don't meet the threshold?  I just put the rates to 0%.

Also, while they reside in New York City, why did the Yonkers nonresident/resident tax automatically get added to the payroll item list?

I'm so confused with New York Law 😞

J
JanbonN
May 16, 2024

Allow me to chime in on this thread and provide further information, @MKlein1.

 

The New York Metropolitan Commuter Transportation Mobility Tax (MCTMT) is calculated based on an employer's total payroll expenses, including wages and compensation, in any given calendar quarter. Maximum rates vary by zone and total payroll expense. Since you don't meet the threshold, setting it as 0% is the correct approach.

 

When setting up the NY MCTMT, a payroll item will be automatically created with the name NY - MCTMT (Transit Tax). You'll have to manually rename it to NY - MCTMT (Zone 1) by following these steps:

 

  1. Go to Lists and select Payroll Item List.
  2. Double-click on NY - MCTMT (Transit Tax).
  3. Edit the payroll tax name (ex: NY - MCTMT (Zone 1)).
  4. Select Next twice.
  5. If necessary, update your tax rates for Zone 1. 
  6. Select Next twice, then Finish. 

 

Then, add it to the employee's profile:

 

  1. Go to Employees and select Employee Center.
  2. Double-click the employee name.
  3. Select the Payroll Info tab and click Taxes.
  4. Select the Other tab and add the payroll item name in the ITEM NAME.
  5. Click OK to save.

 

Moreover, once you pay your employees, or add a new New York employee, the NY-MCTMT (Zone 2) wizard will automatically launch by default. You can simply select No, I prefer to set up my employees myself if you don't have employees in Zone 2.

 

Also, if your business is in one of the applicable counties, you'll need to add the tax to each employee profile, even if they don’t meet the payroll expense threshold. Just set the company rate to 0%.

 

Regarding your second question, residents of Yonkers are subject to the Yonkers Resident Withholding Tax. This tax must be included in paychecks for all employees who live in Yonkers. This tax applies to any services performed or employment in New York City or elsewhere in New York State.

 

Additionally, you can run payroll reports to get a closer look at your business finances.

 

Please return to this thread if you have further concerns about setting up a payroll tax for your employee. We'll be here to help you in any way we can.

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